What tasks a venture project solves
A venture project is a business project aimed at an innovative idea, the development of which has a potentially high return on investment with risks. In this case, developments in the scientific and technological sphere, including bio- and nanotechnology, computer science, and medicine are considered innovative. All these areas are important for modern life, which attracts a lot of attention from specialists.
However, scientific and technical activity has its own specifics, in addition, at the initial stages of development of an idea, it is difficult to say how relevant it will be for the world. Therefore, innovative projects often fail, but there are those that achieve great success. Venture companies support technology startups, helping them to unlock their potential. When the parties collaborate, they develop a project that contains the key points:
– the essence of the idea, SMART-goals;
– the objectives to be achieved, and the mechanism of indicators, which will allow assessing achievements;
– development of a set of actions aimed at solving the goals.There are different classifications by which types of venture projects are distinguished. Most often they are divided according to the following parameters:
1. Market needs. This category includes projects that help meet current needs in a particular segment or create new ones.
2. Novelty. Projects can contain completely new discoveries or modernize already used mechanisms, and develop improvements for a particular area.
3. The functionality of innovation. Projects aimed at the implementation of unique approaches to solving technological, production, managerial, and social problems.
It should be understood that most of the successful companies in the technology sector once started with a venture project – Amazon, Apple, Google, and others. Nowadays, promising companies that once had venture capitalists believing in them and investing in their development are actively developing. One such company is Oculus, a startup that develops virtual reality devices. It’s already generating $2 billion in revenue and promises to increase profitability in the coming years. Another example of a successful venture capital project is the messenger WhatsApp. Initial venture capital investment in it was $250 thousand, and later it was sold for $19 billion.
The main goal of the venture company is to bring the financed startup to the break-even point as quickly as possible, and then start making a profit from it. However, investors do not invest in all innovative ideas. Before cooperating, they carefully evaluate the potential of a project, calculate the costs associated with it, the period of reaching the break-even level, and much more. And only after the potential benefits outweigh all the risks, a decision on further comprehensive support of the startup is made.